JohnJohn Harvard’s Journal

Fish Tales The Harvard Museum of Natural History in November unveiled its new exhibition on . The centerpiece (shown here), a cleverly lit diorama, depicts New England coastal waters from the shallows to the depths: a pioneering way to educate and entrance visitors without penning liv-

Photograph by LesJim HarrisonVants Aerial Photos/courtesy of Harvard Art Museums Harvard Magazine 17 Reprinted from Harvard Magazine. For more information, contact Harvard Magazine, Inc. at 617-495-5746 John Harvard's Journal ing specimens in a small habitat. That dis- ture (focusing on jel- play neatly complements the adjacent gal- lies), and of Harvard lery on the region’s forests, and closes what scientists’ work. They Visit harvardmag.com to see more specimens curators describe as a “gaping hole” in the will likely like the huge from the marine exhibitions, which have underrepresented Australian trumpet exhibition. Earth’s aquatic environment and the stag- shell ( aruanus, a gering biodiversity it supports. type of ), and be thrilled or repelled A few hundred mounted specimens in by the giant isopod (Bathynomus giganteus, surrounding cases (from the millions of a crustacean) at rest in its jar. What par- molluscs and fish among the compara- ent could resist the vivid orange lion’s paw tive zoology holdings) give a sense of evo- scallop (Nodipecten nodosus)—or withhold a on lution, variation, and the sheer smile at the name of the diminutive Wolf s beauty of nature. Youngsters will enjoy fangbelly (Petroscirtes lupus, one of the Pa- arri H m the interactive explanations of nomencla- cific coral-reef combtooth blennies)? Ji

million—but only because corporate, have closed with The Fiscal Norm foundation, and international underwrit- a surplus of $68 The University’s fiscal year 2015, con- ing rose by more than 10 percent, while million—slightly cluded last June 30 and detailed in the an- federal direct funding decreased by nearly ahead of the fis- nual financial report released in late Octo- $15 million. cal 2015 gain. ber, mirrors the outcome of the prior year: • Expenses increased 2.2 percent, to More broadly, Harvard again operated in the black, fol- $4.46 billion from $4.37 billion. Salaries income from stu- lowing a couple of years of small deficits. In and wages were 5.2 percent higher, re- dents (typically their introductory letter, Harvard’s senior fi- flecting a larger workforce and merit in- the schools’ larg- nancial-management team—Thomas J. Hol- creases in compensation. Employee ben- est source of un- lister, vice president for finance and chief efits were reported to have decreased 4.7 restricted fund- financial officer, and Corporation member percent—but adjusting for a one-time, ing) has been Paul J. Finnegan, who is treasurer—wrote, $45.9-million pension-related charge in- growing smartly: Paul J. Finnegan “[T]he results of this past fiscal year follow curred in fiscal 2014, benefits costs in- up 7.3 percent in a recent trend of modest, but continued im- creased somewhat less than 5 percent, fiscal 2014 after deducting scholarships provement in the University’s overall finan- to nearly $500 million. Space and occu- applied to tuition and fees, and a further H pac cial health.” Among the highlights: pancy costs soared more than 9 percent, 6 percent in fiscal 2015, to $930 million. As • Revenue increased 3.1 percent, to $4.53 but were more than offset by a $40-mil- recently as fiscal 2013, sponsored-research billion from $4.39 billion lion reduction in other ex- funding was Harvard’s second-largest (figures are rounded). Ma- penses; both reflect one- source of operating revenue (after the en- Mitchell/ Stephanie jor contributors were the time items. dowment distribution, and ahead of stu- endowment distribution • An operating surplus dent income); now, with research funding for operations (up $54.8 was the result: Harvard fin- stagnant and tuition and fees growing, million, or 3.6 percent); ished the year in the black their relative standing has been reversed, tuition and other income to the tune of $62.5 million. with tuition and fees progressively out-

from students (up $52.3 s As originally reported, fis- stripping sponsored support. million, or 6.0 percent); cal 2014 yielded a surplus The 7.4 percent rise in continuing-edu- y T ufty and gifts for current use s of just $2.7 million; that has cation and executive-programs tuition (to

(up $16.5 million, or 3.9 ourte been restated to a surplus $346 million) has to please Hollister and C percent). Total support for of $22 million. If the pen- Finnegan, who repeat a theme from recent sponsored research edged Thomas J. Hollister sion-related charge were financial reports: the focus on “exploring aige Brown/ aige up by $5.9 million, to $805.8 P excluded, fiscal 2014 would alternative revenue sources.” Tiny now, but of prospective importance as one of those “alternative” revenue sources, is in- In this Issue come from general-interest online courses; in a recent white paper on HarvardX and 22 Overhauling the Endowment 30 Henry the Great other teaching initiatives (see page 24), 23 Faculty Figures 31 On Campus, Concisely Provost Alan Garber listed “economic sus- 24 Teaching and Learning: Taking Stock 32 Yesterday’s News tainability” as the first of three priorities 25 Harvard Portrait 33 Brevia deserving “special attention.” 26 Harvard Law Weighs In 35 The Undergraduate The after-financial-aid tuition and fee 28 Engineering a School’s Future 37 Sports figure is what (please turn to page 22)

18 January - February 2016 Reprinted from Harvard Magazine. For more information, contact Harvard Magazine, Inc. at 617-495-5746